Results 1 to 17 of 17
  1. #1
    Full Member
    Join Date
    December 12th, 2006
    Posts
    370
    Question What is the normal ways of paying Affiliate Managers?
    Sorry if this is in the wrong place.

    Just curious, if you was going to hire an affiliate manager to manage your company

    How would you determine paying them?

    - Commission Based Only?
    - Salary Based?

    Probably those of you who have been affiliate managers would be more familiar with this.

    I am just curious, what is the proceedure for taking on board someone as an affiliate manager

    Would it be out of place now days to see a potential affiliate manager ask for a base salary ?

    Or is it more likely companies would take you on.. only on a commission basis.. and if so.. what is the commission based on?

    Like would the affiliate manager only get paid when affiliates make money?

  2. #2
    AM Navigator Geno Prussakov's Avatar
    Join Date
    May 10th, 2005
    Location
    Washington D.C. Metro Area
    Posts
    11,798
    I'd say that the most common way is a combination of a set monthly fee (or salary, if they are working in-house) + a commission off the affiliate sales that result from the AM's recruitment endeavors.

    Geno

  3. #3
    Newbie Todendron's Avatar
    Join Date
    September 12th, 2007
    Location
    Orem, UT
    Posts
    42
    I have been working as an affiliate manager for the past 3 years and have done base + commission and just base + bonuses. I would always look at the company and the products they sell before signing on with a commission only deal. Sometimes sour lemonade is just sour no matter how you pour it.

  4. #4
    Merchant & ABW Ambassador
    Join Date
    May 31st, 2006
    Location
    Houston TX
    Posts
    4,731
    Mods might want to move this to Aff manager forum.

    To ans your question, I do not think there are people who will jump at working on commission only.

    As they say YMMV

  5. #5
    .
    Join Date
    January 18th, 2005
    Posts
    2,973
    I got into this (affiliate consulting) business in early 1997 by doing "advice-only consulting," for startups like art.com (the original art.com, before the site launched and long before it was acquired by Getty, sold by Getty, or merged into AllPosters).

    These clients hired me specifically to write the "plan" for the affiliate program, including many specific terms and practices, and also including specific requirements for the e-commerce web site, and specific recommendations for hiring and training staff. For that work, I charged a specific fixed fee, and promised a specific deliverable (usually, a detailed report, and quite often, a presentation to the founders, funders, and/or key staff). I also helped to train the new-hire affiliate managers for some clients. At that time, I insisted that clients hire an in-house affiliate manager, because it was going to be full-time work that could most effectively be done in-house.

    I am now in a sort of "special niche" because I will only accept AM work on an "interim" basis (with the understanding that the relationship will only last for a short period, generally 3-6 months, and that I will help the client hire and train an in-house affiliate manager).

    Most recently, I've done this work on a flat monthly fee basis, expressly providing a "share of my time," such as a committment to spend 40 or 80 or 120 hours per month. (Note that I don't have any employees or subcontractors; it is MY time that I am selling.)

    In the past, I have offered to work on a commission-only basis for a couple specific clients, and in each case the client chose to hire someone else, because they thought it would be cheaper to pay a $3,000 or $5,000 monthly fee. In each case, the client was unhappy with the folks they'd hired, and each came back asking me to work on a commission basis. In each case, I've declined that second opportunity after seeing how poorly those particular programs had performed.

    I have also "politely declined" most of the affiliate-management opportunities that come to me, after a quick look at the prospective client's web site. Far too often, there are multiple "fatal flaws" that are likely to prevent successful affiliate relationships. (Even more often, I turn down PPC consulting work for the same reason.)

    Don't focus on just the money! I think a key issue is defining the agreement. What exactly will the "affiliate manager" do, and if the AM is an "outsourced program manager" or agency, who exactly will do the work? What deliverables will be provided? Who will own the data collected (for example, data regarding affiliates recruited)? If the agreement provides for a "commission" or "bonus" structure, how is that affected if the agreement is terminated? What happens if the client is unhappy with the service level? What happens if the consultant is unhappy with the client's conduct or business practices? What happens if the affiliate-enrollment rate or overall sales volume is significantly lower (or higher) than expected? What if the merchant changes pricing or other terms? What if the merchant declines to follow many or most of the consultant's recommendations (commission rate, cookie duration, rejection of parasitic affiliates)? What if there are significant technical problems that affect "tracking"?

    As a lawyer in the early 1990s, I advised several clients who had worked as salespeople or sales managers, with commission and bonus promises. In each case, my client had lined up a "big deal" but the company terminated their relationship and refused to pay the promised commission or bonus. In one case, the company actually admitted that they had terminated the sales manager specifically to avoid paying the promised bonus! Of course, in each case there was either no written agreement, or a very short "letter agreement" that did not clearly define the terms. In each case, I wasn't able to help the client because my fees would have exceeded the maximum likely judgment, and there was never an "attorney's fee" clause.
    Last edited by markwelch; September 14th, 2007 at 07:30 PM.

  6. #6
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    I moved the thread!

    For a start-up I prefer to negotiate a launch fee with 50% up front and 50% upon launch. Then I work off of a monthly retainer with a bonus percentage of revenue generated. When the percentage of revenue exceeds the retainer the retainer is removed and all compensation is performance based.

    For existing program that have conversion and are generating revenue I prefer a percentage of revenue. It is all performance based and my energy is spend making sales through the channel rather than documenting what I am doing.

  7. #7
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    Base plus commissions. If I want to work on commissions only, I would be an affiliate and not a manager. And getting a program launched or relaunched means there is a period of time that I am doing a lot of work prior to commissions being earned at all. Like Chuck, my base is a draw against commissions, so once the program is performing, the "base" goes away.

    An inhouse manager would get paid a salary, like any other employee of a company.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  8. #8
    Full Member
    Join Date
    December 12th, 2006
    Posts
    370
    Thank you everyone.. what a great community this place is.

    I cant quote either one of you, as the advise you all have given is PURE GOLD

    I really appreciate the time you took to think about it and reply

    I strongly agree loxly on what you said regarding, if it was on commission only then, I would be an affiliate myself, I was thinking about this myself today and its like you read my mind.

    As there is a fair amount of effort and time that is put into gaining affiliates BEFORE sales are made.. someone has to pay for that.. right?

    Like I can understand from a company's standpoint, They dont just want affiliates, they want affiliates that bring them sales.. and they may see that, is the basis they want to pay an affiliate manager.. but I dont think im off course to say that ... its more than just getting affiliates on board that make sales, its having someone who can commit there time to focus on coming up with ideas, planning, and creating things that will gain affiliates and better assist them.

    Like Mark said.. it would be OUR time that we would be selling them.

    Yet on the same hand I can see where and company may think they only want to pay an affiliate manager based on performance of bringing in affiliates that make sales as ultimately that is the end result they want, money in their pocket and if your not doing that they are paying you for ideas that arent working and planning thats not working but.. as you clearly said it Loxly..

    1. There is a lot of preparation, time and effort that goes into building up and affiliate program way before a sales is made, and if its commission only based on sales and the first month you only managed to bring in 50 affiliates, then you may end up getting paid lower than what you would of had you been paid a base amount, meaning that commission might not cover all the hours you have put into it.

    2. Also would i be wrong in saying that to be an affiliate manager properly you also would have to be focusing on that, not your other online activities or another 9-5 job.. which means if you have to decide should i commit to this, it would mean you would have to be compensated for the time you put into it. As you have given up another job that will pay you money to focus on building an affiliate program

    I mean heck.. people employ people all the time to find out 2 weeks or a month later they aren't performing.. there are no guarantees.. but that should not be used as an excuse to say ok " i will only pay you commission "

    Like I know there are commission only jobs out there. .like car sales people for instance and so on.... so I can see where companies are coming from..

    But I have to agree with you all.. that the best route to go would be being paid a base monthly rate, if sales are made then by affiliates a commission/bonus ( not sure what to call it ) would be paid.

    Mark said a lot that was really good.. especially in regards to Defining what the affiliate manager is going to do, and how often will they be required to work? 8 hrs a day, 5 days a week? or only 8 hours per week?

    Man I wish there was a guide book that detailed how you should approach becoming an affiliate manager for a company, because if the company has never had an affiliate manager, they are kind of having to feel their way around in the dark on deciding what is right

    Having the possibility of being an affiliate manager for someone else, has challenged my thinking on what I should make clear to the company

    Though your advice above as given me some ideas..

    What do you think is a realistic Monthly base salary, just roughly, doesn't have to be high?

    Would you also let the company decide on what your commission of every affiliate sale will be?

    thanks

  9. #9
    Full Member
    Join Date
    December 12th, 2006
    Posts
    370
    Quote Originally Posted by WyndhamVacationR-EricEwe
    Mods might want to move this to Aff manager forum.

    To ans your question, I do not think there are people who will jump at working on commission only.

    As they say YMMV
    what is YMMV?

  10. #10
    ABW Founder Haiko de Poel, Jr.'s Avatar
    Join Date
    January 18th, 2005
    Location
    New York
    Posts
    21,609
    Your Mileage May Vary
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  11. #11
    Full Member
    Join Date
    December 12th, 2006
    Posts
    370
    Quote Originally Posted by Haiko de Poel, Jr.
    Your Mileage May Vary
    Ah I got it

    So what are peoples thoughts then on what they would think would be a base monthly salary?

    Would it be based on 40 hrs a week or 40hrs a month

    If its only 40hrs a month, then it would have to be a set pay amount or hourly rate right?

  12. #12
    Analytics Dude Kevin's Avatar
    Join Date
    January 18th, 2005
    Location
    Rochester, NY
    Posts
    5,904
    You're talking for hiring someone in house, correct? Then the salary should be on par with the rest of your marketing professionals (if in fact you have others).

    Secondly, there are some weeks where the program will need 60 hours of attention, and some where you can probably get by with 15 or 20. But it definitely needs to be looked at daily.
    Kevin Webster
    twitter: levelanalytics

    Kayak Fishing
    Web Analytics and Affiliate Marketing

  13. #13
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    No one is going to give you actual figures to use to pay your employees, you need to pay them based on their value as an employee and their skills. There are plenty of places to find competitive salary information for marketing professionals on the web and in print.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  14. #14
    Full Member
    Join Date
    December 12th, 2006
    Posts
    370
    Quote Originally Posted by Noth
    You're talking for hiring someone in house, correct? Then the salary should be on par with the rest of your marketing professionals (if in fact you have others).

    Secondly, there are some weeks where the program will need 60 hours of attention, and some where you can probably get by with 15 or 20. But it definitely needs to be looked at daily.
    What would you say are the daily tasks then of an affiliate manager, Before gaining affiliates and after gaining affiliates?

  15. #15
    Full Member
    Join Date
    December 12th, 2006
    Posts
    370
    Quote Originally Posted by loxly
    No one is going to give you actual figures to use to pay your employees, you need to pay them based on their value as an employee and their skills. There are plenty of places to find competitive salary information for marketing professionals on the web and in print.
    So someone with entry level experience, $2000 to $2500 a month and then when sales are made a negotiable amount of each sales, sound ok?

  16. #16
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    easylife, it's time for you to do some searching and reading here on Abestweb. Now you are asking questions that you need to find the info and do research and reading about, and not just expect it to be handed to you.

    Magic Bullet is a good place to start.
    Last edited by loxly; September 15th, 2007 at 08:57 PM.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  17. #17
    Merchant & ABW Ambassador
    Join Date
    May 31st, 2006
    Location
    Houston TX
    Posts
    4,731
    Quote Originally Posted by easylife
    So someone with entry level experience, $2000 to $2500 a month and then when sales are made a negotiable amount of each sales, sound ok?
    There are lots of variables you are talking about.
    -Are you hiring in house or outsourced?
    -Where are you located? If you are looking at in house and in NYC, I think that might be below avg.
    -What vertical are you in?
    -Benefits (if in house) and commission payout for OPM.

    As Loxly suggested, I think you might want to search.

  18. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Replies: 0
    Last Post: October 24th, 2013, 07:40 AM
  2. What Are The Best Ways To Build An Affiliate Program?
    By stevendevhomeprotection in forum Starting an Affiliate Program & Merchant Q&A
    Replies: 8
    Last Post: March 18th, 2010, 11:15 PM
  3. What is the normal ways of paying Affiliate Managers?
    By easylife in forum Affiliate Manager Job Postings
    Replies: 6
    Last Post: September 14th, 2007, 09:21 PM
  4. 25 Ways That Can Cause Failure as an Affiliate
    By Haiko de Poel, Jr. in forum Midnight Cafe'
    Replies: 26
    Last Post: November 21st, 2004, 05:47 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •